On 23rd Jan 2020 in a web post, the Stablecoin giant Tether announced the addition of a new product “Tether Gold (XAUT)” which is a gold-backed stablecoin. Now it has launched this gold-backed cryptocurrency.
This newly launched token is available on Ethereum blockchain as an ERC-20 token while on the Tron blockchain it is available as TRC-20 token. It can also be moved to any other on-chain address from the Tether wallet of the purchasers.
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Tether Gold’s every token is backed by one troy fine ounce of gold. The market capitalization of Tether Gold is around $6.3 million currently and the circulation supply is 3990.225 XAUT.
Tether Gold is the best way to hold Gold
This gold-backed stablecoin has control over the storage of the physical gold. It is held in Switzerland vault with the help of the best in class and anti-threat measures. Therefore, it is the best way to hold Gold. As the post reads:
Tether Gold (XAU₮) is the only product among the competition that offers zero custody fees and has direct control over the physical gold storage, safely held in a Switzerland vault, adopting best in class security and anti-threat measures. Today, Tether Gold (XAU₮) is the best way to hold Gold.
Those who hold entire tokens will get redemption offers provided by Tether and investors can also physically redeem or deliver their gold for cash.
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Tether Gold and its competitors
With the development of Tether Gold, the stablecoin competition will increase. Because XAUT is not the only gold-backed stablecoin in the market, there are a lot more of this type.
In September 2019, a crypto exchange company known as Paxos released its stablecoin “PAX Gold. Another most successful gold-backed token is Digix (DGX).
However, with the launch of Tether Gold, the crypto exchange Bitfinix has become the first exchange to list XAUT on its platform. Bitfinix is also known as the sister company of Tether.
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